Delhi High Court - Orders
Afflatus International Through Its ... vs Commissioner Of Central Goods And ... on 17 April, 2025
Author: Prathiba M. Singh
Bench: Prathiba M. Singh
$~79
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 4850/2025
AFFLATUS INTERNATIONAL THROUGH ITS MANAGING
PARTNER SH VIVEK MAHNA .....Petitioner
Through: Mr. Rajesh Mahna, Mr. Ramanand
Roy, Mr. Mayank Kouts, Mr. Shiva
Narang and Ms. Ridhi Mahna,
Advocates.
versus
COMMISSIONER OF CENTRAL GOODS AND SERVICE TAX &
ORS. .....Respondents
Through: Mr. Gibran Naushad, SSC with
Mr.Harsh Singhal, Advocate.
CORAM:
JUSTICE PRATHIBA M. SINGH
JUSTICE RAJNEESH KUMAR GUPTA
ORDER
% 17.04.2025
1. This hearing has been done through hybrid mode. CM APPL. 22190/2025 (for exemption)
2. Allowed, subject to all just exceptions. Application stands disposed of. W.P.(C) 4850/2025
3. The present petition has been filed by the Petitioner- M/s Afflatus International under Article 226 and 227 of the Constitution of India, inter alia, assailing the impugned order dated 21st January, 2025 passed by the Respondent No. 2- Commissioner of Central Goods and Service Tax, Delhi South Commissionerate by which various demands have been raised on the following grounds:
(1) Wrongful availment of Input Tax Credit (hereinafter, 'ITC'); (2) Non-payment of Goods and Service Tax (hereinafter, 'GST') on This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 23/04/2025 at 21:45:09 sale of duty credit scrips;
(3) Interest; and
(4) Penalties
4. The submission of Mr. Rajesh Mahna, ld. Counsel for the Petitioner is that on duty credit scrips, a notification bearing no. 14/2022- Central Tax dated 05th July, 2022 was issued which clarified clearly that no GST would be payable on the sale of duty credit scrips. The benefit of the said notification has not been given to the Petitioner.
5. It is submitted by the ld. Counsel for the Petitioner that since the scrips had been given as incentive to exporters on sale of goods, no GST would be payable as such scrips would not be considered as goods. There are other issues also which have been raised by Mr. Mahna.
6. Issue notice in the writ petition restricting to the issue of the sale of duty credit scrips alone. The said issue would be adjudicated by this Court and if the Petitioner fails, then the entire demand as per the order would be liable to be paid by the Petitioner.
7. This is agreeable to Mr. Mahna as he is willing to give up the appellate remedy and press the present writ petition on this aspect.
8. Ld. Counsel for the Respondent submits that the notification bearing no. 14/2022- Central Tax was effective from 05th July, 2022. However, ld. Counsel for the Petitioner submits that this notification was a mere clarification.
9. Issue notice on this limited issue. Mr. Gibran Naushad, ld. Counsel for the Respondent, accepts notice.
10. In the meantime, subject to the Petitioner depositing the sum of Rs.50,000/- with the Central Goods and Service Tax Department there shall This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 23/04/2025 at 21:45:09 be stay of the impugned order.
11. Let the reply on this limited issue be filed by the Respondent.
12. List on 19th August, 2025.
PRATHIBA M. SINGH, J.
RAJNEESH KUMAR GUPTA, J.
APRIL 17, 2025 v/ck This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 23/04/2025 at 21:45:10